Miller Corporation issued 7,000 shares of its $5 par value common stock in payments for attorney services billed at $70,000. Miller Corporation's stock has been actively trading at $10 per share. The journal entry for this transaction would include a credit to: A. Legal expenses for $70,000 B. Common stock for $70,000 C. Paid - in Capital in Excess of Par-Common for $70,000. D. Paid - in Capital in Excess of Par-Common for $35,000.

Q: East Co. issued 1,000 shares of its $5 par common stock to Howe as compensation for 1,000 hours of…

A: Journal entries (JE) refers to the entries that records the events which incurred during the course…

Q: Nebraska Inc. issues 2,350 shares of common stock for $75,200. The stock has a stated value of $13…

A: Common stock refers to a security that speaks to ownership in an organization. Holders of common…

Q: A company issues  1 million shares of common stock with a par value of $0.18 for $16.60 a share. The…

A: Issue share capital at a premium: The journal entry for the issue of the share capital at a premium…

Q: Treasury stock that had been purchased for $4,760 last month was reissued this month for $5,640. The…

A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…

Q: Sneed Corporation issues 13,300 shares of $46 par preferred stock for cash at $61 per share. The…

A: Whenever the preferred stock shares are issued at premium i.e above their par value, the par value…

Q: A firm issues 10,000 share of $2 par-value common stock, receiving proceeds of $40 per share. The…

A: Par value of shares=Number of shares×Par value=10,000×$2=$20,000

Q: The Sneed Corporation issues 10,900 shares of $49 par preferred stock for cash at $63 per share. The…

A: Share capital: It refers to the cap[ital raised by the company by issuing common stock or preferred…

Q: Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1…

A:

Q: Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par…

A: Dividends can only be declared if the corporation has sufficient unrestricted retained earnings. On…

Q: A corporation originally issued $6 par value common stock for $11 per share. It purchased the stock…

A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…

Q: Nexis Corp. issues 1,280 shares of $9 par value common stock at $18 per share. When the transaction…

A: The journal keeps the record of transactions on regular basis. The shares issued at more than par…

Q: journal entry to record the issuance, how much should be recorded for Paid-in Capital in Excess of…

A: Given in the question:- 500 Common Stock * $10 per share= $5000 200 Preferred Stock * $ 20 per…

Q: Nexis Corp. issues 1,970 shares of $9 par value common stock at $17 per share. When the transaction…

A: The journal entry to record the issue of  shares as follows:

Q: Badger Corporation issued 9,000 shares of its $5 par value common stock in payment for attorney…

A: Paid-in Capital in Excess of Par = Attorney services  bill value - Par Value of Common stock.

Q: Elk Co. issues 1,000 shares of $5 par common stock for $30,000. The firm used Pilot’s Underwriting…

A: The shares can be issued for cash or non cash assets. The excess amount received for shares issued…

Q: Jan. 10 July 1 Issued 68,000 shares for cash at $6 per share. Issued 42,000 shares for cash at $10…

A: Journal entries refers to the entries which are made at the end of the period or year and it records…

Q: Nexis Corp. issues 2,470 shares of $11 par value common stock at $16 per share. When the transaction…

A: The excess amount over the par value of a common stock is considered as paid-in capital in excess of…

Q: The following selected transactions pertain to Ehrlich Corporation: Jan.     3     Issued 90,000…

A: The journal entries are prepared to record the transactions on regular basis. The shares can be…

Q: A company has 180,000 shares of common stock authorized with a par of $1 per share, of which 30,000…

A: Stock dividend is the dividend declared and distributed among the shareholders but in form of stock.…

Q: At the end of the prior annual reporting period, Barnard Corporation's balance sheet showed the…

A: Lets understand the basics.Stockholders Equity consist of the share which the shareholders has…

Q: On July 1, Blue Spruce Corporation purchases 460 shares of its $5 par value common stock for the…

A: Treasury shares means the share which has been buy back by the company . It will be shown as…

Q: Treasury stock that had been purchased for $4,166 last month was reissued this month for $5,455. The…

A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

Q: Badger Corporation issued 5,000 shares of its $5 par value common stock in payment for attorney…

A: The journal entries are prepared to record the transactions on regular basis. The shares issued at…

Q: A company issued 60 shares.of $100 par value common stock for $7,100 cash. The journal entry to…

A: Lets understand the basics. Journal entry is required to make to record event and transaction occur…

Q: Hanson Co. issued 10,000 shares of its $5 par common stock for $15 a share. Assume the sale occurred…

A: Definition: Common stock: Common stock is the instrument used by the company for raising funds from…

Q: Nexis Corp. issues 1,980 shares of $10 par value common stock at $16 per share. When the transaction…

A: The objective of the question is to determine the correct journal entry for the issuance of common…

Q: Alma Corp. issues 2,150 shares of $9 par common stock at $15 per share. When the transaction is…

A: When the share is issued at an excess price than a par value of a share, it is recorded to the…

Q: Lancer, Inc received building with fair value of $400,000 in exchange for 30,000 shares of its $3.00…

A: The asset shall be recorded at fair value of the asset itself or fair value of the shares, whichever…

Q: Treasury stock that had been purchased for $3,908 last month was reissued this month for $5,262. The…

A: Introduction: A journal entry is a record of a business deal in the accounting system of the…

Q: Nebraska Inc. issues 4,150 shares of common stock for $132,800. The stock has a stated value of $18…

A: The organization can raise funds for the operation by issuing common stock, preferred stock for the…

Q: Quickbux Co. issued and sold 1,000 shares of common stock, with a par value of $5, for $12 per…

A: Shareholders' equity includes common stock, preferred stock, paid-in capital in excess of par, and…

Q: To expand operations, Aragon Consulting issued 1,550 shares of previously unissued common stock with…

A: The objective of the question is to understand the accounting entries for the issuance of common…

Q: Nexis Corp. issues 1,960 shares of $11 par value common stock at $15 per share. When the transaction…

A: A journal entry is the recording of financial transactions of business entity in the books of…

Q: On January 1, Vermont Corporation had 43,000 shares of $9 par value common stock issued and…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Next Level Morgan Corporation issues 500 “packages” of securities for $180 per package on December…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Ehrlich Co. is authorized to issue 1,000,000 of it's $5 par value common stock. 1. Prepare entries…

A: The journal entries are prepared to record the transactions on regular basis. The temporary account…

Q: During the year, the following selected transactions affecting stockholders' equity occurred for…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: The Sneed Corporation issues 11,100 shares of $54 par preferred stock for cash at $62 per share. The…

A: The company can raise funds from different sources like by issuing common stock, issuing preferred…

Q: edit to Additional Paid in Capital $40,000. bit to Legal Expense $40,000. ebit to Legal Expense…

A: The journal entry for the transaction would debit legal expense and credit common stock and…

Q: Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a…

A: Journal entry is the first stage of the accounting process.Journal entry is used to record business…

Q: WW Corp. resells 400 shares of its own common stock for $20 per share. WW had acquired these shares…

A: The treasury stock includes the shares when the company acquires its own shares back from the…

Q: If Norben Company issues 4,000 shares of $5 par value common stock for $140,000, the account Common…

A: Paid-in Capital in Excess of Par represents the amount investors pay for shares above their nominal…

Q: Lily Corporation issued 5,400 shares of stock. Prepare the entry for the issuance under the…

A: S.No.      Particulars.           Debit($)     Credit($) A).           Cash.…

Q: Pharoah Inc. issued 12900 shares of no-par common stock with a stated value of $5 per share. The…

A: A journal entry records a business transaction in the accounting system of a company. Journal…

Q: Alma Corp. issues 1,120 shares of $7 par common stock at $15 per share. When the transaction is…

A: The correct journal entry to record issue of shares will be: Account Titles   Debit   Credit…

Q: Nexis Corp. issues 1,900 shares of $12 par value common stock at $17 per share. When the transaction…

A: Journal entries are passed following the golden rules of accounting  Debit all assets and expenses…

Q: Required information [The following information applies to the questions displayed below.] Incentive…

A: A. When  5,400 shares are issued for cash at $24 each, then total cash consideration received  =$…

Q: Flint Corporation purchased 2,500 shares of its $10 par value common stock for $167,500 on August 1.…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: Gotham Inc. issued 10,000 shares of its $2 par value common stock for $25 per share. The journal…

A: Cash (10,000 x $25) 250,000     Common Stock (10,000 x $2)   20,000   Additional Paid-in Capital…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.